Pound (GBP) slips following UK jobs data
The pound (GBP) stumbled at the start of yesterday’s session after the UK unemployment rate leapt from 4% to 4.3%, higher than the forecast 4.1%.
Above-forecast wage growth cushioned GBP from steeper losses, although the British currency still trended lower overall.
In the absence of any impactful UK data today, Sterling could trade in a mixed capacity.
Euro (EUR) weakens as German sentiment declines
The euro (EUR) found itself on the back foot yesterday as Germany’s latest economic sentiment index fell more than expected.
Morale in the Eurozone’s largest economy deteriorated this month, due to fears of US tariffs on European exports and the collapse of the German coalition government.
Today, the common currency may face muted movement amid a lack of impactful Eurozone data.
US dollar (USD) extends post-election upside
The US dollar (USD) climbed yesterday as ‘Trump trade’ continued to boost the American currency’s appeal.
With the Republicans likely to win both chambers of Congress, President-Elect Donald Trump will have a clear path to enact tax cuts and tariffs. These measures could push up inflation, thereby forcing the Federal Reserve to slow its pace of interest rate cuts.
Looking forward, the spotlight is on the US consumer price index due out this afternoon. With American inflation forecast to have ticked higher last month, the ‘greenback’ may maintain a positive trajectory.
Canadian dollar (CAD) buoyed by rising oil
Rising oil prices lifted the crude-linked Canadian dollar (CAD) yesterday, while CAD’s positive correlation with USD also helped to support the currency.
Oil price dynamics could once again impact the commodity-linked ‘loonie’ today. If crude continues to climb, CAD may gain further ground.
Australian dollar (AUD) uncertain in absence of data
The Australian dollar (AUD) traded without a clear direction overnight amid a mixed market mood and lack of impactful Australian data.
New Zealand dollar (NZD) flat amid quiet trade
The New Zealand dollar (NZD) moved in a narrow range last night, with the lukewarm mood and a lack of data subduing NZD.